SEC Document

The changes in benefit obligations of the plans at May 31, 2017 and 2016 were as follows:

U.S. Plans

Non-U.S. Plans

(In thousands)

2017

2016

2017

2016

Accumulated postretirement benefit obligation at beginning of year

$

7,653

$

7,640

$

25,420

$

24,646

Service cost

1,097

1,061

Interest cost

229

235

854

832

Benefit payments

(2,383

)

(251

)

(529

)

(464)

Actuarial (gains) losses

393

29

1,766

536

Currency exchange rate changes

(740

)

(1,191)

Accumulated and accrued
postretirement benefit obligation at end of year

$

5,892

$

7,653

$

27,868

$

25,420

In determining the postretirement benefit amounts outlined above, measurement dates as of May 31 for each period were applied.

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2017 and 2016 are as follows:

U.S. Plans

Non-U.S. Plans

(In thousands)

2017

2016

2017

2016

Current liabilities

$

(411)

$

(455)

$

(522)

$

(482)

Noncurrent liabilities

(5,481)

(7,198)

(27,346)

(24,938)

Net Amount
Recognized

$

(5,892)

$

(7,653)

$

(27,868)

$

(25,420)

The following table presents the pretax net actuarial gain (loss) and prior service credits recognized in accumulated other comprehensive
income (loss) not affecting retained earnings:

U.S. Plans

Non-U.S. Plans

(In thousands)

2017

2016

2017

2016

Net actuarial gain (loss)

$

(299

)

$

94

$

(7,354)

$

(5,986)

Prior service credits

1,107

1,341

Total recognized in accumulated
other comprehensive income not affecting retained earnings

$

808

$

1,435

$

(7,354

)

$

(5,986

)

The following table includes the changes recognized in other comprehensive income:

U.S. Plans

Non-U.S. Plans

(In thousands)

2017

2016

2017

2016

Changes in plan assets and benefit obligations recognized in other comprehensive income:

Prior service cost

$

-

$

-

$

-

$

-

Net loss (gain) arising during the year

393

29

1,766

536

Effect of exchange rates on amounts included in AOCI

(168

)

(290

)

Amounts recognized as a component of net periodic benefit cost:

Amortization or curtailment recognition of prior service credit (cost)

234

247

Amortization or settlement recognition of net gain (loss)

-

-

(230

)

(229

)

Total recognized in other
comprehensive loss (income)

$

627

$

276

$

1,368

$

17

The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic postretirement benefit
costs under the plans:

U.S. Plans

Non-U.S. Plans

Year-End Benefit Obligations

2017

2016

2017

2016

Discount rate

3.61%

3.76%

3.61%

3.92%

Current healthcare cost trend rate

14.75%

10.37%

5.85%

5.98%

Ultimate healthcare cost trend rate

4.36%

4.36%

4.20%

4.20%

Year ultimate healthcare cost trend rate will be realized

2037

2037

2030

2030

U.S. Plans

Non-U.S. Plans

Net Periodic Postretirement Cost

2017

2016

2015

2017

2016

2015

Discount rate

3.76%

3.95%

4.00%

3.92%

4.00%

4.40%

Healthcare cost trend rate

10.37%

11.34%

12.28%

5.98%

6.06%

6.31%

Ultimate healthcare cost trend rate

4.36%

4.50%

4.50%

4.20%

4.20%

4.20%

Year ultimate healthcare cost trend rate will be realized

2037

2029

2029

2030

2030

2030

RPM International Inc. and Subsidiaries 59

About RPM

RPM International Inc. (NYSE: RPM) owns subsidiaries that are world leaders in coatings, sealants, building materials and related services. From homes to precious landmarks worldwide, their brands are trusted by consumers and professionals alike to protect, improve and beautify. Among its leading consumer brands are Rust-Oleum, DAP and Zinsser.

About Cookies

This website uses cookies and other tracking technologies (also known as pixels or beacons) to aid your experience (such as viewing videos), as well as “performance cookies” to analyze your use of this website and to assist with marketing efforts. If you click the "Accept All Cookies" button or continue navigating the website, you agree to having those first and third-party cookies set on your device. If you do not wish to accept cookies from this website, you can choose to not allow cookies from this website by updating your browser preferences. For more information on how we use Cookies, please read our Privacy Policy.